Diversifying markets to match Trump plan to raise tariffs — NEDA

Metro Manila, Philippines — US President-elect Donald Trump’s plan to raise tariffs under his administration may impact the global economy, and the Philippines has anticipated this by diversifying its markets, the National Economic and Development Authority (NEDA) said on Thursday, Nov. 7.

Trump said on the campaign trail that he would raise tariffs by 10% to 20% on all imports, and a higher 60% duties on China.

Asked on its possible impact to the Philippine economy, NEDA Secretary Arsenio Balisacan said, “It’s too early, I believe, to say anything about the impact to the Philippines, because first we have to see whether the incoming president said during the campaign will actually will be the one put in place once he sits in office.”

“If at all, if there’s going to be any negative effects on the administration and if it will push through with what the incoming president was saying about the imposition of tariffs of 20% for non-China and 60% for China, that could have an impact on the global economy. And that’s what we’ll worry (about),” he added.

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Balisacan said he hopes that the US “will not go that far because it's not even in their long-term interest, to be accurate, to isolate their economy.”

He said the tariff policy may “eventually backfire” and result in higher inflation and lower the purchasing power of Americans.

Meanwhile, Balisacan said the country would work with other major partners for exports.

In opening up more markets, he cited the conclusion of the free trade agreement (FTA) with South Korea.

He added that the FTA with the United Arab Emirates is on its final stages, while the country has resumed negotiations with the European Union.

He also said potential investors from London have “tremendous interest… to explore opportunities” in Manila.

“We want to see many more of these FTAs, bilateral and multilateral agreements, so that we can open up many more opportunities, and in the process diversifying our exports, but also the sources of our imports,” the socioeconomic planning secretary said.

“I can assure you we are very mindful of that thrust to diversify our economy and, as I said, that is needed to soften any adverse event or shock like sudden increase in protectionism in one trading partner,” he said.